The New Hampshire Center for Public Policy Studies today released its new analysisas to the net economic impact of a Salem casino as proposed in SB152:
"a net loss to the state of roughly $2 million a year."
The analysis is bad news for Las Vegas-based Millennium Gaming, which, since 2005, has been peddling its Money From Thin Air fairy tales to a revenue hungry legislature.
Millennium Gaming (Fix It Now) website logo 2/28/13
Here are some verbatim quotes from the Center's analysis:
- While expanded gambling will yield revenue to the state, our model's estimates of the social costs of problem gambling suggest no long-term net state benefit when the tax on casino operations is set at 30 percent or less.
- [P]redicting revenue from license fees is difficult, and budget writers should use caution in basing a budget on such revenue.
- Gambling revenues continue to decline locally and nationally
- Our model still does not account for a number of factors, including the potential positive or negative effects of expanded gambling on New Hampshire's "brand" (as a tourist destination and place to do business), the potential private costs associated with pathological gambling (so-called "abused dollars").
An Annual Loss of $67 Million if Full Social Costs Are Included
The Center's social cost estimates are extremely conservative. Using the most-frequently cited social cost numbers in the gambling impacts literature, a single Salem casino as proposed in SB152 would cost New Hampshire $67 million annually.
Internet Gambling Will Drive Revenues Even Lower
Delaware, Nevada, and New Jersey have now legalized Internet gambling. Facing declining revenues at its three race track casinos due to neighboring state casino proliferation, Delaware was first to legalize Internet gambling in 2012. Illustrating the gambling proliferation problem, Delaware also legalized Keno-slots and sports betting at bars and restaurants throughout the state.
We've seen in industry after industry how quickly the Internet has devastated brick and mortar business models -- in books, electronics, and office supplies. Now it's about to happen to physical casinos.
Internet gambling means that the days of big tax money from slot machines at brick & mortar casinos are numbered. It means that any budget or spending promises from a casino tax had better be revised downward yet again. It means that casino taxes must not be the basis for support of any ongoing state programs, such as highways, mental health, or education.
The Coalition urges the legislature to defeat any casino legislation and to build a state budget without relying on casino license or tax revenues.
For Sobriety in Revenue Estimating,
Jim Rubens, Chair
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